Proptech
What are people’s thoughts on the proptech space? Anyone here have experience at a VC in the proptech space? If so, what is the day to day like and what is your background? I work at a large RE investment fund currently, but am intrigued by what funds like Fifth Wall are doing.
Based on the most helpful WSO content, Fifth Wall is highlighted as the single most prominent Real Estate VC Fund in the proptech space. Many users recommend following them closely to gain insights into the industry. However, there are mixed opinions about the proptech space itself. For instance, some professionals attending proptech events have described the space as addressing "non-existent pain points" and being "half-baked," with no significant threat of disintermediation to traditional real estate roles yet.
If you're intrigued by funds like Fifth Wall, it might be worth exploring their portfolio and strategies to understand their approach to innovation in real estate. As for the day-to-day at a VC in the proptech space, there isn't specific information in the knowledge base, but VC roles typically involve deal sourcing, due diligence, portfolio management, and staying ahead of market trends. Your background in a large RE investment fund could provide a strong foundation for transitioning into this space.
Sources: From Real Estate Finance to Founder of Development Company - Q&A, , How to break into Real Estate Private Equity (w/ 0 RE Knowledge), General Discussion about Proptech, Understanding Real Estate
It was the cool thing back in 2019.
I want to get into it too but the PropTech niche is brutal and a VC money pit with very few unicorns
Just based on my experience as an asset manager, I get flooded daily with prop tech offerings. Reps trying to pitch me an energy savings platform or a data management platform or a dashboard or tracker. I largely ignore them. I might be interested in 5-10% of what comes in, but I'm usually paying attention to a bigger/more established platform, definitely not a ragtag team who are pitching me their beta platform.
All that to say, this space seems quite saturated, particularly as of late. I think everyone realizes that CRE is the last holdout in the tech transformation and everyone now wants to be the one to create the all in one solution to "doing" real estate. I used to think this way. The truth is, tech can only help so much in CRE - it's just not complicated/convoluted enough.
The "play" in this space is not to become the biggest proptech firm, the play is to become big enough to get bought out by a larger company. M&A activity is rampant in our industry right now, with CoStar being the prime example and the large brokerages like CBRE & JLL following suit.
Proprech is an interesting angle, but I'd rather do real estate or do tech in another industry.
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